Tds on payment of testing charges to overseas, Income Tax

[abhay pandey]

Dear All

I want your view on below matter.

We are making payment of testing charges to our overseas vendor of Germany.

As per latest amendment in section 195 fee for technical service where the agreement is made on or after April 1, 1976, tds rate @ 25.75% will be applicable.

As per DTAA between India and Germany TDS will be deducted @ 10%

Please clarify me that at which rate TDS should be deducted 10% or 25.75% as we have not any agreement with the party.

The agreement clause mention in section 195 related to agreement between two parties or for DTAA date.

In my view its for agreement between parties not .

Kindly provide your views.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.